Which legal structure risks personal assets for actions taken by others in the business?

The legal structure that risks personal assets for actions taken by others in the business is a partnership. In a partnership, all partners share liability for the debts and obligations of the business. This means that if one partner makes a decision or takes an action that leads to financial trouble or legal issues, the other partners can be held personally accountable. Their personal assets can be pursued to satisfy business debts or liabilities, which is a significant financial risk associated with this type of business organization.

In contrast, a corporation protects its shareholders from personal liability for business debts, meaning that their personal assets are generally safe from the company's creditors. A sole proprietorship likewise puts the owner at risk, as there is no separation between personal and business liability, but it does not involve shared liability like a partnership does. A limited liability company (LLC) offers a higher level of protection for personal assets since the owners (members) are typically not personally liable for the debts of the LLC.